OpenAI taps Magnite and PubMatic to sell unsold ChatGPT ad inventory

PubMatic and Magnite shares rose in Monday trading after a report by The Information said OpenAI had reached unannounced agreements with the two ad-selling platforms to fill unused advertising space on ChatGPT. PubMatic rose 4.5% and Magnite gained 5%.

According to the report, which cited people familiar with the matter, advertisers can use the platforms' existing tools to set budgets, submit bids and upload creative inside ChatGPT, while OpenAI keeps control over ad placement and delivery.

The two sides did not disclose financial terms. An OpenAI spokesperson said the arrangements make it easier for advertisers to buy and manage ChatGPT ads through tools they already use.

The report said initial transaction volumes through the two platforms remain modest, with participants close to the arrangements expecting rapid expansion as integration deepens. Investors are watching next quarter's results for signs that ad flow is moving from trial allocations to a larger revenue contribution.

What do these terms mean?

Sell-side platform (SSP): Software that publishers use to sell ad space to advertisers through automated auctions.

Remnant ad inventory: Ad space not sold through direct contracts, offered on the open market at variable prices.

Programmatic advertising: The automated buying and selling of ads in a very short time based on audience and behaviour data.